Design IP protection provides firms with temporary exclusivity in appropriating the economic returns from their investments in product differentiation through external appearance. This paper contributes to the literature on the valuation of design IP rights by offering a novel empirical analysis of the value distribution of US design patents. It develops a composite value index that combines 18 design indicators regarding the quality of a patent's prior art, the patent prosecution characteristics, and the economic impact of the patent. Patent-level regression analysis of enforcement value demonstrates that the composite index shows a satisfactory explanatory power as compared to when the indicators are considered separately. At the firm level, the proposed index is positively and significantly correlated with a firm's market value above and beyond other knowledge and IP assets.
Composite value index of design patent indicators
Grid Thoma
2026-01-01
Abstract
Design IP protection provides firms with temporary exclusivity in appropriating the economic returns from their investments in product differentiation through external appearance. This paper contributes to the literature on the valuation of design IP rights by offering a novel empirical analysis of the value distribution of US design patents. It develops a composite value index that combines 18 design indicators regarding the quality of a patent's prior art, the patent prosecution characteristics, and the economic impact of the patent. Patent-level regression analysis of enforcement value demonstrates that the composite index shows a satisfactory explanatory power as compared to when the indicators are considered separately. At the firm level, the proposed index is positively and significantly correlated with a firm's market value above and beyond other knowledge and IP assets.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
